"Positive Outlook: Wall Street Analysts Bullish on These Dividend Stocks"

## Top Dividend Stocks to Consider According to Wall Street Experts Many investors are seeking dividend stocks that can provide steady income and the potential for long-term capital appreciation. Here are five dividend stocks worth considering, according to top experts on TipRanks. ### IBM (IBM) IBM recently reported mixed results for the second quarter, with revenue falling short of expectations but earnings surpassing estimates. The company is focusing on growth areas like hybrid cloud computing and artificial intelligence. IBM generated over $3.4 billion in free cash flow and paid dividends worth $3 billion in the first six months of 2023. It increased its quarterly dividend by 0.6% to $1.66, marking the 28th consecutive year of dividend hikes. Stifel analyst David Grossman raised his price target for IBM stock to $144 and reiterated a buy rating, emphasizing that IBM is a good choice for dividend investors looking for a defensive market hedge. ### Chord Energy (CHRD) Chord Energy, an oil and gas operator with assets in the Williston Basin, rewards shareholders through a quarterly base dividend, a variable dividend, and share buybacks. For the first quarter, Chord declared a total cash dividend of $3.22 per share, including a variable dividend of $1.97 per share. RBC Capital analyst Scott Hanold expects Chord to declare a variable dividend of $0.15 per share for the second quarter and a base dividend of $1.25 per share, along with share buybacks in the range of $25 million to $30 million. Hanold is bullish on CHRD, emphasizing that the company's balance sheet is strong and it has the opportunity to allocate a significant portion of free cash flow to shareholder returns. ### Energy Transfer (ET) Energy Transfer is a publicly traded limited partnership that operates a vast pipeline network across 41 U.S. states. The company recently announced a quarterly cash distribution of $0.31 per common unit for the second quarter, a 0.8% increase compared to the previous quarter. Energy Transfer is targeting a 3% to 5% growth in its annual distribution. Based on lower commodity prices, analyst Elvira Scotto expects the performance of midstream companies to be affected. However, she maintains a buy rating on Energy Transfer stock and a price target of $17, noting the company's attractive integrated asset base and potential for higher cash returns through increased distributions to unitholders. ### EOG Resources (EOG) EOG Resources is a crude oil and natural gas exploration and production company. The company returned $5.1 billion to shareholders last year through dividends and repurchased $310 million worth of shares in the first quarter of 2023. EOG recently declared a regular quarterly dividend of $0.825 per share and offers a forward dividend yield of about 2.6%. Mizuho analyst Nitin Kumar revised his estimates for EOG, anticipating higher cash flows and the opportunity for buybacks. Kumar maintains a buy rating on EOG with a price target of $146. ### Morgan Stanley (MS) Morgan Stanley reported strong second-quarter results, driven by the strength of its wealth management division. The company announced a dividend hike to $0.85 per share, commencing with the third quarter of 2023, and reauthorized a $20 billion share repurchase program. BMO Capital analyst James Fotheringham increased his forward estimates and raised his price target for MS stock to $103. He notes that the wealth management division remains a bright spot for the bank. Fotheringham maintains a buy rating on the stock, anticipating an improvement in deal activity. In conclusion, these top dividend stocks present attractive opportunities for investors seeking steady income and potential long-term growth. However, the impact of these stocks on a new business may vary based on the industry and business model. For a new business looking to invest in technology and innovation, IBM's focus on hybrid cloud computing and artificial intelligence could be intriguing. With its consistent dividend hikes and defensive market hedge, IBM may offer stability for investors in the ever-evolving tech landscape. On the other hand, Chord Energy, as an oil and gas operator, may not align with the goals of a new business aiming for sustainability or renewable energy. The performance of Chord Energy's stock relies heavily on the oil and gas market, which has shown significant volatility in recent years. Energy Transfer, as a midstream company operating a pipeline network, may have limited relevance to a new business unless it is directly related to the energy sector or logistics. The company's performance is influenced by commodity prices, and its growth potential might be constrained by environmental concerns surrounding fossil fuels. EOG Resources, an exploration and production company in the oil and gas industry, faces similar challenges as Chord Energy. While it may provide short-term gains through dividends and potential share buybacks, it may not align with the long-term sustainability goals of a new business. Lastly, Morgan Stanley's strong wealth management division could offer opportunities for a new business seeking financial services or partnerships. However, the impact of dividend stocks like Morgan Stanley on a new business may be indirect, mainly limited to potential investments or collaborations. Overall, before considering investing in dividend stocks, it is crucial for a new business to carefully evaluate how the industry, business model, and long-term goals align with the prospects and risks associated with these stocks. Article First Published at: https://www.cnbc.com/2023/07/30/top-wall-street-analysts-are-upbeat-about-these-dividend-stocks.html